Punjab unable to make power subsidy payment

May 27, 2017 04:40 PM

Punjab News Express/Vinod GuptaCHANDIGARH: Punjab Government has not been able to make full power subsidy amount of Rs. 3608 crore due today but has paid partial amount of Rs.898 crore to Punjab State Power Corporation Limited (PSPCL).

PSPCL has filed this information with Punjab State Electricity Regulatory Commission (PSERC) in its reply to petition of Padamjit Singh retired Chief Engineer regarding nonpayment of subsidy by Punjab Government. The petition was heard on May 9 while the next hearing would be held on May 30.

PSPCL in its reply has admitted that the shortfall of subsidy for 2016-17 was ₨. 2342.37 crore and as per the PSERC order of March 29 Punjab government was required to make a payment of ₨. 633.17 crore for April 2017 and ₨. 633.17 crore for May 2017 thereby the total subsidy payable as on today is Rs. 2709.91 Crore

For continuing the subsidy in June 2017, an advance monthly payment of ₨. 633.17 Crore is also required to be paid latest by May end thus subsidy payable as on May 31 is Rs 3343.08 crore.

Padamjit Singh in his petition has contended that it is not permissible to continue subsidised power supply without making the required payment as per section 65 of Act.

The petition has mentioned that in the run for state elections then government had announced the electricity concession of 200 units per month to all backward class domestic consumers with load up to 1 KW was allowed from November with subsidy amount of ₨. 315 crore. Another concessional tariff of 499 paisa per unit to SP consumers with subsidy amount of ₨. 29.97 crore was also announced.